President Donald Trump issued a memorandum on his first day in office that outlines his administration’s trade policy and begins implementation of his trade policy agenda. Trump aims at establishing a “robust and reinvigorated trade policy that promotes investment and productivity, enhances our Nation’s industrial and technological advantages, defends our economic and national security, and — above all — benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.”
The memorandum directs various government agencies to investigate and review U.S. trade policy and propose recommendations to address certain trade issues. These investigations and reviews are due April 1, 2025 and will provide the basis for further changes in U.S. trade policy. Notably, the memorandum does not impose any tariffs.
The memorandum is organized in three sections:
Addressing Unfair and Unbalanced Trade
Economic and Trade Relations with the People's Republic of China; and
Additional Economic Security Matters
Addressing Unfair and Unbalanced Trade
The President directs the Secretary of Commerce, Secretary of the Treasury, U.S. Trade Representative (USTR), and Secretary of Homeland Security to work in consultation with each other to:
Investigation “the causes of our country’s large and persistent annual trade deficits in goods, as well as the economic and national security implications and risks resulting from such deficits, and recommend appropriate measures, such as a global supplemental tariff or other policies, to remedy such deficits.”
Consider the creation of an External Revenue Service (ERS) to collect tariffs and duties.
Review any unfair foreign trade practices by other countries and recommend appropriate actions to remedy such practices under applicable authorities
Begin the public consultation process for the July 2026 review of the United States-Mexico-Canada Agreement (USMCA) and study the impact of the agreement on U.S. workers and businesses.
Review and assess potential currency manipulation by U.S. trading partners; assess whether this provides an unfair competitive advantage and identify countries that should be designated as currency manipulators.
Review existing U.S. trade agreements and sectoral trade arrangements and recommend any potential revisions.
Identify countries with which the United States could negotiate future trade agreements on a bilaterial or sector-specific basis.
Review U.S. policies and regulations for antidumping and countervailing duties and assess the potential for improving compliance by foreign companies and governments.
Assess the loss of tariff revenues and the risks from importing counterfeit products and contraband drugs from the current de minimis exemption of $800.
Investigate whether U.S. citizens or companies are subject to any discriminatory or extraterritorial foreign taxes.
Review the impact of all trade agreements, including the World Trade Organization Agreement on Government Procurement, on the volume of Federal procurement covered by Executive Order 13788 (Buy American and Hire American), and make recommendations to ensure that such agreements are being implemented in a manner that favors U.S. workers and manufacturers.
Economic and Trade Relations with the People's Republic of China; and
The President directs the USTR to:
Review the U.S.-China Economic and Trade Agreement to determine whether the PRC is acting in accordance with this agreement; recommend actions based on the findings of this review, up to and including the imposition of tariffs or other trade measures.
Review the Biden administration report entitled “Four-Year Review of Actions Taken in the Section 301 Investigation: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” and consider whether additional tariffs are needed, particularly with respect to industrial supply chains and circumvention through third countries.
Investigate other acts, policies, and practices by the PRC that may be unreasonable or discriminatory and that may burden or restrict U.S. commerce; make recommendations regarding appropriate responsive actions.
Assess legislative proposals regarding Permanent Normal Trade Relations with the PRC and make recommendations regarding any proposed changes to such legislative proposals.
The Secretary of Commerce must assess the status of U.S. intellectual property rights such as patents, copyrights, and trademarks conferred upon PRC persons, and shall make recommendations to ensure reciprocal and balanced treatment of intellectual property rights with the PRC.
Additional Economic Security Matters
The President directs different government agencies and departs to:
Conduct a full economic and security review of the U.S. industrial and manufacturing base to assess whether it is necessary to initiate investigations to adjust imports that threaten U.S. national security.
Review and assess the effectiveness of the exclusions, exemptions, and other import adjustment measures on steel and aluminum in responding to threats to U.S. national security; make recommendations based on the findings of this review.
Review the existing U.S. export control system and advise on modifications; make recommendations regarding how to maintain, obtain, and enhance the U.S. technological edge and how to identify and eliminate loopholes in existing export controls -– especially those that enable the transfer of strategic goods; assess and make recommendations regarding export control enforcement policies and practices, and enforcement mechanisms to incentivize compliance.
Review and recommend appropriate action with respect to the rulemaking by the Office of Information and Communication Technology and Services (ICTS) on connected vehicles, and shall consider whether controls on ICTS transactions should be expanded to account for additional connected products.
Review whether Executive Order 14105 of August 9, 2023 (Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern) should be modified or rescinded and replaced, and assess whether the final rule entitled “Provisions Pertaining to U.S. Investments in Certain National Security Technologies and Products in Countries of Concern,”, which implements Executive Order 14105, includes sufficient controls to address national security threats. The Secretary of the Treasury must make recommendations based upon the findings of this review.
Assess any distorting impact of foreign government financial contributions or subsidies on United States Federal procurement programs and propose guidance, regulations, or legislation to combat such distortion.
Assess the unlawful migration and fentanyl flows from Canada, Mexico, the PRC, and any other relevant jurisdictions and recommend appropriate trade and national security measures to resolve that emergency.